IN THE PAPERS
In The Papers 29 January
29-01-2009
by Sylvia Leatham
Illegal downloaders face disconnection | Intel chooses Leixlip for new R&D hub
The Irish Times reports that internet users face having their connections closed down if they continue to download music illegally, following an agreement reached between Eircom and four major record companies in the High Court. Under a system known as "three strikes and you're out", Eircom customers downloading music from peer-to-peer services will receive two warnings and will then be disconnected if they continue to engage in the activity. As part of the deal, record companies EMI, Sony, Universal and Warner have agreed they will take "all necessary steps" to put similar agreements in place with all other internet service providers in Ireland.
The same paper says that chip giant Intel has selected its Leixlip campus as one of two new European R&D hubs, a move that could lead to new jobs and investment. The US firm said it would set up two 'Open Labs' in Leixlip and Munich as part of a new initiative to co-ordinate the work of 800 Intel researchers at different sites in Europe. At the launch of the initiative in Brussels, company chairman Craig Barrett said he was "very excited" by the potential of Intel's Irish research teams. He also downplayed the prospect of job losses at Intel's Leixlip facility, saying the future is still "bright".
The paper also says that more than 600,000 homes will be able to avail of broadband and telephone services through their television cable service by the end of this year, under a major upgrade by Chorus NTL. The company says it is investing over EUR90 million to accelerate the upgrading of its national network and provide combined broadband and telephone services in Athlone, Carlow, Portlaoise, Sligo and over three-quarters of Dublin.
The paper also notes that satellite TV firm BSkyB has cut the price of its high-definition (HD) digital recorder set-top boxes, in a bid to drive subscriber growth. The Sky+ boxes will now retail at EUR49, down from EUR149. This mirrors a similar move in the UK and follows a strong quarter of growth in HD subscriptions on both sides of the Irish Sea. Sky is also planning to add about 60 new jobs to its Irish operation to handle the growth.
According to the Financial Times, Sony swung to a quarterly operating loss and reiterated a forecast for its first annual loss in 14 years. The consumer electronics firm posted an operating loss of JPY17.96 billion for the three months to December, down from a JPY236.22 billion profit a year earlier. Net profit plummeted 95 percent to JPY10.4 billion on sales of JPY2.15 trillion, down about 25 percent from a year ago. The Japanese company re-stated its latest forecast of a record JPY260 billion operating loss for the year ending 31 March.
The Wall Street Journal says that Time Warner's AOL is cutting around 700 employees, or 10 percent of its workforce, as a sharp decline in ad spending puts pressure on its business. The layoffs will take place over the next few quarters, with most of the US layoffs finished by March, AOL chief Randy Falco said in a memo to staff on Wednesday. AOL is also scrapping merit pay increases this year, consolidating facilities and reviewing its services and international operations.
The same paper says that business software giant SAP has posted a 13 percent rise in net profit for the fourth quarter, but said it would cut jobs to cope with the economic downturn. Aided by cost-cutting, SAP's net profit grew to EUR850 million in the quarter ended 31 December, up from EUR752 million a year earlier. Revenue rose 8 percent to EUR3.49 billion. SAP said it would lay off 3,000 people in 2009, or nearly 6 percent of its global workforce. It's the first time the company has resorted to job reductions since it was founded in 1972.
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